Discussion Board #1
Discussion – Driving Force: Reduction to Barriers to Trade
I chose the Key Term "Driving Force: Reduction to Barriers to Trade" for several very different reasons. First, it seems that the impact of international trade is at the very forefront on every political discussion today. One can't read or listen to the news without hearing about China and the challenges the US has with them as a trading partner, the impact that China's trading power has on the Global Economy, and the impact that their expansionist policies and ideas are having on other countries. Second, I have had the opportunity to participate in some importing and exporting activities between the United States and Costa Rica, who participate in a free trade agreement, as well as the United States and Brazil, who do not participate in a free trade agreement.
A reduction in barriers to trade means to reduce such barriers that "affect the ease with which a country can import and export goods." Such barriers can include:
- Tariffs or taxes on imported goods
- Quotas or the restriction of the import of something to a specific quantity
- Embargoes or the prohibition of commerce and trade with certain nation
- Sanctions or economic actions of one nation, or group of nations, against another group as part of a trade dispute
However, a reduction in barriers to trade are not necessarily limited to government imposed barriers such as those listed above. Improving the time delays in transportation, documentation, port times, and customs clearance can also have a positive impact on trade facilitation, particularly in developing nations. The World Economic Forum in its report "Enabling Trade: Valuing Growth Opportunities" indicates that the "benefits of improved global trade facilitation far exceed those available from further tariff reduction (World Economic Forum [WEF] 2013).
Caroline Freund and Nadia Rocha discussed the...